New Jersey Home Improvement Contractor Bond Guide
In New Jersey, if you want to apply for a new license or maintain an existing home improvement or home elevation contractor license, you must purchase surety bond and insurance coverage to meet state requirements.
Bond Overview
- Purpose: To protect home improvement clients from financial harm
- Who Needs It: All home improvement and home elevation contractors in NJ
- Regulating Body: The Division of Consumer Affairs – Department of Law & Public Safety
- Required Amount: $10,000, $25,000 or $50,000 – based on project value
- Premium Rates: $100, $250, and starting at $500, respectively
Keep scrolling to learn more about how home improvement and home elevation contractor surety bonds work.
What Is a New Jersey Home Improvement Contractor Compliance Bond?
A New Jersey home improvement and home elevation contractor business bond is a type of contract surety bond required for statewide licensing with the Division of Consumer Affairs. It is a form of financial security that ensures contractors adhere to state licensing laws and protects clients from harm due to misconduct or faulty work.
How Much Bond Coverage Do I Need?
Under N.J.S.A. 56:8-142, your required bond coverage is based on the value of contracted home improvement or home elevation work for the year or for a specific project:
- $10,000 Bond: Single contracts under $10,000 or yearly contracts totaling less than $150,000
- $25,000 Bond: Single contracts between $10,000 and $120,000 or yearly contracts totaling $150,000–$750,000
- $50,000 Bond: Single contracts over $120,000 or yearly contracts totaling more than $750,000
The annual deadline for renewing your home improvement contractor license and filing the compliance bond is March 31st.
How Much Do Home Improvement and Home Elevation Contractor Bonds Cost?
$10,000 and $25,000 New Jersey home improvement contractor bonds cost $100 and $250, respectively. You can buy your bond instantly online with no credit check!
If you need the $50,000 home improvement and home elevation contractor bond, rates start at $500. Apply to receive an exact quote today.
- $10,000 Bond: $100 flat rate, no application or credit check
- $25,000 Bond: $250 flat rate, no application or credit check
- $50,000 Bond: Starts at $500, underwriting required to determine exact rate
Select a multi-year term at checkout to save 25% and time on renewals. For example, you can get three years of $10,000 bond coverage for $150 making your annual premium just $83.33!
SuretyBonds.com offers the lowest rates available from our nationwide network of surety providers with no added fees.
How Does a New Jersey Home Improvement Bond Work?
These bonds create a legally-binding contract between three parties:
- Principal: The contractor purchasing the bond
- Obligee: The New Jersey Division of Consumer Affairs requiring the bond
- Surety: The provider issuing the bond
By purchasing this bond, you promise to uphold the terms to the Division. This includes following all regulations under the Home Improvement and Home Elevation Contractor Licensing Act.
If a client, the obligee, or the public is harmed by the principal’s actions, they can file a claim on the bond for reimbursement. The surety provider backs the financial liability of the bond to repay those claims.
Who Needs a Home Improvement and Home Elevation Contractor Businesses Bond?
In 2024, new legislation P.L. 2023, c. 237 was signed — amending CBRA and creating stricter regulations for home improvement and home elevation contractors in the state.
Now, all contractors must provide one of the following forms of financial security:
- A compliance surety bond
- An irrevocable letter of credit
- Other acceptable securities
This is mandatory to obtain, renew or reinstate contractor registrations. Learn more about the pros and cons of surety bonds vs. letters of credit here.
If you do other types of construction work, visit our New Jersey Contractor License Bond Guide to see all bond requirements in the state.
How Do I Get a New Jersey Home Improvement and Home Elevation Contractor Bond?
SuretyBonds.com provides the fastest and easiest way to get home improvement contractor compliance bonds. Follow these simple steps:
- Buy or Apply Online: Based on your bond amount, purchase instantly or enter your information to get a same-day quote using our online form.
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond documentation via email
Upon receipt, file the official bond documentation with the Division of Consumer Affairs – Department of Law & Public Safety.
Can I Get Bonded With Bad Credit?
Yes! With SuretyBonds.com you can get a New Jersey home improvement contractor compliance bond for up to $25,000 in coverage with no credit.
If you need the $50,000 bond amount. You may still be able to get bonded with bad credit. Submit an online application today to see if you qualify.
How to Renew Your Home Improvement Compliance Bond
New Jersey home improvement contractor bonds require annual renewal unless you opt in to a multi-year term. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
Once you pay for your renewal premium, we’ll issue a continuation certificate to keep your bond active for another term. File this with the obligee as instructed.
How to Become a Home Improvement Contractor in New Jersey
You can become a home improvement or home elevation contractor by applying for a license with the New Jersey Division of Consumer Affairs. Complete the following application steps:
- Training: Complete an approved training program
- Exam: Pass the state licensing exam
- Liability Insurance: Purchase general liability insurance for at least $500,000 per occurrence for home improvement work or $1,000,000 per occurrence for home improvement services
- Worker’s Comp: Obtain worker’s compensation insurance (if necessary)
- Bond: Submit your compliance bond or alternative financial security in the required amount
- Fee: Pay the $110 application fee via check or money order
- Application: Complete and mail the application form with company formation documents and proof of insurance attached to the address below
Division of Consumer Affairs
Regulated Business Section - Home Improvement Contractor Business Unit
124 Halsey Street, 7th Floor
P.O. Box 46016
Newark, NJ 07101
Learn more about the recent licensing changes in our Guide to New Jersey’s Updated Home Improvement Contractor Laws.
What's the Difference Between Home Improvement vs. Home Elevation Contractors?
Home improvement contractors work on a variety of renovation and remodeling projects focused on improving the appearance and value of homes. Their work doesn't involve significant structural alterations .
Home elevation contractors alternatively specialize in projects including structural lifting such as raising an entire house above flood levels and performing foundation work.
